Reps summon Agip MD over breach of $30m contract

The House of Representatives has given the management of Nigeria Agip Oil Company Ltd, 13 days to appear before it over an alleged breach of contract with an indigenous remediation company.

The House was specific in its summon that the Managing Director, Director Procurement as well as Director Legal in addition to six other employees of the company should make physical appearance before the Committee on the said date.

The Uzoma Nkem-Abonta-led Public Petition Committee was displeased that the absence of NAOC’s MD and the other officials was stalling its investigation into the alleged of contract with an indigenous waste management company that petitioned the House.

In a letter dated 15th November, 2017 and addressed to the NAOC’s MD, the Committee expressed its dissatisfaction with the non-appearance of the key officials at the last Tuesday meeting, warning that without the appearance of the MD and his management team, the investigation would remain unresolved.

Consequently, the Committee directed the physical appearance of the affected officials of the company to give evidence in the alleged breach of 20,000 metric tons waste management contract.

According to an indigenous waste company, Agip had in 2006 commissioned it to provide treatment service for 20,000 metric tons of sludge at its Brass site at a rate of $230per ton.

However, it was alleged by the indigenous company that with a change of management and after 5,250 metric tons of sludge have been treated, Agip decided to renege on the initial contract agreement.

The petitioner is demanding the House to prevail on Agip to pay it $30m adjudged by a court for breach of contract and unpaid balance due already incinerated waste.

Similarly, the House is also considering the next legislative action against construction company, Julius Berger Plc.

The House had considered and adopted a Public Petition Committee report on a petition against the construction company for a debt of N422m it owed a micro finance bank.

The debt was the proceeds and accrued interest for a contract executed over 20 years ago.

The resolution of the House following the adoption of the report on 26 September, 2017 was conveyed to the construction company in a letter by the Clerk to the National Assembly, Mohammed Sani-Omolori and received on 5th October, 2017.

The House was concerned that no action has been taken by the construction company yet and is considering the next legislative action to resolve the issue, it was gathered.